Why in news?
A controversial cryptocurrency associated with the business interests of former US president Donald Trump’s family entered the trading markets in September 2025. The tokens, known as $WLFI, were initially issued as non‑transferable governance tokens but are now tradeable on major exchanges.
What are WLFI tokens?
- Origin: The tokens are linked to the planned Trump‑branded social media and entertainment network called “World Liberty.” Investors who bought early packages received WLFI tokens as a bonus.
- Token characteristics: Each WLFI token provides voting rights on certain platform decisions and potential access to exclusive content. They are now sold on exchanges and can be traded like other cryptocurrencies.
- Regulatory status: Unlike traditional shares, the tokens do not confer legal ownership. Regulators have warned investors to be cautious about the speculative nature and legal ambiguities of such tokens.
Implications
- Politics meets crypto: The token merges celebrity branding with digital assets, attracting attention but also concerns about conflict of interest and undue influence.
- Speculation: Critics say that hype rather than intrinsic value drives demand. Prices may fluctuate wildly, exposing retail investors to losses.
- Regulatory challenges: Governments may struggle to enforce securities law as tokens straddle the line between utility, membership and investment products.
Investors are advised to exercise due diligence before investing in WLFI or similar celebrity‑linked tokens.